INDONESIA - BANKING - Bank Indonesia Plans to Protect Bank Share Diversity

Bank Indonesia is evaluating a plan that would limit single ownership in a commercial bank, in a bid to improve corporate governance.

“The central bank is studying the idea,” central bank governor Darmin Nasution said on Friday.  (source)

INDONESIA - EVENTS - High level conference - RI, Malaysia to promote ties on Islamic banking

Indonesia and Malaysia have agreed to establish a regulatory framework that will enable them to better synchronize their Islamic financial concepts.

As part of the plan, two memorandum of understandings (MoUs) were inked on Monday between the Indonesian Sharia Banks Association (Asbisindo), the Association of Islamic Banking Institutions Malaysia (AIBIM), as well as between Maybank Islamic Bhd and PT Bank Syariah Mandiri. (source)

INDONESIA - EVENTS - High level conference - Developing cooperation Islamic finance Indonesia Malaysia

REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia and Bank Negara Malaysia agree to boost cooperation in the development of Islamic finance. It involves the cooperation of Islamic banking is growing rapidly lately.
"Islamic finance such as Islamic banking is no longer the compliment (complementary) but has an alternative financing, said the Governor of Bank Indonesia Nasution said in Jakarta on Monday (18 / 7)." So there should be synergy of cooperation or collaboration between Islamic banking in Malaysia and Indonesia to improve quality and expand the Islamic market, "he added. (source)

INDONESIA - EVENTS - conference on Islamic Finance entitled “Enhancing Financial Linkages towards Economic Prosperity” to be held in Jakarta, Indonesia on18 July 2011

Bank Negara Malaysia and Bank Indonesia
Joint Conference on Islamic Finance, 18-19 July 2011, Jakarta

Bank Negara Malaysia (BNM) and Bank Indonesia (BI) is organising a joint conference on Islamic Finance entitled “Enhancing Financial Linkages towards Economic Prosperity” to be held in Jakarta, Indonesia on18 July 2011 at Shangri-La Hotel. HRH Raja Nazrin Shah, the MIFC Financial Ambassador; Dr. Zeti Akhtar Aziz, Governor, BNM; Darmin Nasution, Governor, BI and industry leaders in the financial sectors of both countries will be speaking at the event. The conference acts as a discussion platform to explore opportunities to further enhance two-way investments between Indonesia and Malaysia; and towards strengthening linkages between its Islamic financial markets.

In conjunction with the conference, three workshops will take place on 19 July 2011. These workshops discuss opportunities for strengthening cross-border liquidity management, product development and innovation; and creating an enabling environment for Islamic finance.

To download the event agenda, click Here

To download the registration form, click Here
Deadline for registration is Thursday, 14 July 2011

INTERNATIONAL - Bank Indonesia will join IILM

JAKARTA: Bank Indonesia (BI) secured an approval from the House Commission XI to join International Islamic Liquidity Management (IILM). Such integration is expected to assist Shariah banking in managing liquidity.

Governor of Bank Indonesia Darmin Nasution perceived an efficient financial liquidity management as a pivotal element to improve the performance of Sharia banking institution. According to him, such integration will further foster the growth of Sharia banking in the future. (source)

INTERNATIONAL - BI seeks House approval for $5m to grow Islamic finance

Bank Indonesia (BI) is seeking the House of Representatives’ approval for $5 million in capitalization funds for the International Islamic Liquidity Management (IILM) to develop sharia financing in Indonesia, home to the world’s largest Muslim population.

BI Governor Darmin Nasution on Monday said IILM members comprised 12 countries and multinational institutions, including Iran, Malaysia, Kuwait, Luxemburg, Qatar and the United Arab Emirates, the Islamic Development Bank (IDB), the Islamic Corporation for the Development of the Private Sector (ICD) and the Islamic Financial Services Board (IGFB). (source)

REGULATIONS - BI to take strong measures against disobedient bankers

Jakarta (ANTARA News) - Bank Indonesia (BI) Governor Darmin Nasution said he would act firmly against bank executives who did not respect deals with or orders given by the central bank.

"The board members concerned will be summoned and ordered to undergo a fit and proper test again. The punishment could be that he or she would not be considered to have passed the test," he said here on Friday.

He said BI would impose the sanction if bankers broke the agreements or rules issued by the central bank, including the agreement on limits of deposit interest rates in big banks.